Digital Transactions Authoritative, insightful and timely information for payments professionals
BNY, formerly the Bank of New York Mellon Corp., early on Monday completed a $10 million transaction over the RTP Network, a record payment for the instant-payments system, which launched in 2017.
The transaction, an inter-company liquidity-management payment from BNY client Computershare to an account at another financial institution, is the first multi-million-dollar transaction over the RTP network since it increased its per-transaction limit from $1 million to $10 million on Sunday.
The network, which is operated by The Clearing House Payments Company LLC, raised its limit to meet growing customer demand for sending higher dollar amounts in real time over the network, according to a TCH spokesperson.
“We raised the limit in response to the needs of the banks and credit unions that use the network,” the spokesperson says. “Having a higher limit helps [them] better serve their corporate clients and provides an option [for] wire services and ACH transactions of this size 24/7.”
More than 285,000 businesses rely on the RTP network each month to send and receive payments, according to New York City-based TCH. In November, the RTP network was averaging more than 1 million payments per day.
The increased limit also opens the door for TCH to convert high-dollar-value checks that are part of treasury-management services to digital transactions over the RTP network, the company says.
“Having a higher limit helps our clients differentiate themselves by increasing the use cases for their corporate clients,” says Carl Slabicki, executive platform owner, treasury services, at BNY.
The increased transaction limit also provides corporate customers more agility to respond to unplanned liquidity needs, fund payrolls, and move wealth-management or brokerage funds between accounts, BNY says.
In the case of Computershare, the company was able to use the higher limit to improve its internal liquidity.
“We are just starting to scratch the surface here,” Slabicki adds.
